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CalHR Issues Pay Letters Ending the PLP 2020 Reduction and Implementing Salary Increases

Posted: 7/9/2021 Tags: benefits budget legislation policy representation salary Tags Views: 2088

This week CalHR issued two pay letters impacting excluded employees. Pay Letter 21-18 ends the pay reductions (generally 9.23%) from the Personal Leave Program 2020. Pay Letter 21-19 increases salaries for most excluded employees through General Salary Increases and includes a number of Special Salary Adjustments. The State Controller’s Office is implementing these changes with the July 2021 pay period warrants.

All excluded employees are receiving the same General Salary Increases as related rank-and-file employees and from ACSS’ initial review, it appears all Special Salary Adjustments have been passed along to related supervisors and managers.

ACSS awaits a pay letter for the July 1, 2021 General Salary Increase (5.06%) and Special Salary Adjustments for S19 and M19 employees. ACSS will keep impacted employees apprised of the expected timing of these salary adjustments.

CalHR has informed ACSS that the resumption of the “OPEB/CERBT” employee contribution is now expected to also take effect with the July pay warrant. This employee contribution to prefund retiree health care benefits was suspended during the PLP 2020 pay reductions with the state picking up the employees’ portion. The employee contributions generally range from 2 percent to 4.6 percent of salary.

With salaries restored, ACSS now looks forward to working in earnest with CalHR and impacted departments to address a number of supervisory and managerial pay and classification issues.

Pay Letter 21-18 ending the PLP 2020 reductions can be read here.

The portions of Pay Letter 21-19 affecting excluded employees can be read here. (page 14 through 45.)

If you have questions about the salary increases or the prefunding of retiree healthcare, please contact your ACSS Labor Relations Representative.


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ACSS Meets with CalHR: PLP 2020 to End, Excluded Employee Salary Increases July 1, 2021

Posted: 6/16/2021 Tags: bargaining benefits budget policy salary Tags Views: 5107

ACSS met with the Department of Human Resources (CalHR) on June 15, 2021 to discuss pay and benefits for the state’s supervisory, managerial, confidential and exempt employees.

Excluded Employee Pay Plan for 2021-2022

CalHR has confirmed to ACSS that the Personal Leave Program (PLP) salary reductions of 9.23% will end effective June 30, 2021. Full salaries will be restored for all excluded employees and accrual of PLP days will end. CalHR has also confirmed that generally, excluded employees will receive the same percentage salary increases as the bargaining unit to which they are affiliated.

The Exempt and Excluded Employee Pay Plan includes:

  • An end to the Personal Leave Program salary reduction of 9.23%
  • General Salary Increases effective July 1, 2021:

    EXCLUDED EMPLOYEES AFFILIATED WITH BARGAINING UNIT: GSI
    1, 3, 4, 11, 14, 15, 17, 20, 21 (SEIU Units)  4.55%
    2 (+1.33% additional salary adjustment for all)  4.04%
     5  4.90%
     6  5.58%
     7  5.06%
     9  5.58%
     10  7.63%
     12  5.06%
     13  5.83%
     16  5.06%
     18  5.58%
     19*  5.06%
  • Special Salary Adjustments and Pay Differentials will be extended to exempt and excluded employees where appropriate.
  • Employees will resume the “OPEB” contribution to pre-fund retiree health care (the amount varies from 1.4% to 4.6% of salary). The deduction is expected to resume with the August 2021 pay warrant.
  • All exempt and excluded employees associated with the SEIU bargaining units will continue to receive the $260 taxable cash benefit (health affordability payment) through June 30, 2022.

Exempt and Excluded Employees not directly tied to a bargaining unit (such as many employees who have an “E” Collective Bargaining Identifier) are expected to receive the 4.55% GSI.

CalHR is working on the “Pay Letters” and expects the salary adjustments to be reflected in the July pay warrants. As the pay letters are developed, ACSS will continue advocacy with CalHR to ensure excluded employees receive all appropriate special salary adjustments.

Negotiations between CalHR and the representatives for rank-and-file bargaining unis 8, 10 and 19 for new labor contracts continue. ACSS has proposed that any increases in those MOUs also be provided to related excluded employees.

Other Salary and Benefit Advocacy for ACSS Members Continues

At the June 15, 2021 meeting, CalHR and ACSS continued the discussion of salary inequities and classification issues for excluded employees.

CalHR has again committed to providing substantive responses to many ACSS proposals including:

  • Allocating Nursing Consultant, Program Review employees to State Safety Retirement
  • Salary inequity adjustments for Program Directors, Program Assistants, and Unit Supervisors
  • Salary inequity adjustments for excluded Environmental Planners, Transportation Planners and Right-of-Way Agents
  • Reclassification and salary adjustments for the excluded employees in the Health Facility Evaluator Series
  • Salary inequity adjustments for the Food Service Supervisor excluded classes for fiscal year 2020-2021.

ACSS will continue to keep impacted members apprised of the status of potential increases to pay and benefits.

* BU 19 UPDATED as of 7/1/2021


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May Revision of the 2021 – 2022 State Budget: End of Pay Reductions and Deferrals

Posted: 5/14/2021 Tags: budget legislation legislature policy salary Tags Views: 3511

Governor Newsom released his May Revise of the state budget on May 14, 2021. The budget includes a projected $75.7 billion surplus. The historic $267.8 billion budget ($196.8 billion general fund) includes $24.4 billion in reserves, with $15.9 billion in the state’s rainy day fund.

In his budget summary, the Governor notes that last year state employees “stepped up at a time of uncertainty” by deferring scheduled pay increases and pay reductions through the Personal Leave Program. Although the Governor notes long-term financial risk remains high, the higher-than-anticipated tax revenue and additional federal funds have drastically improved the near-term picture. With that backdrop, the budget proposal contains a few highlights of importance to ACSS members:

  • Instructs CalHR to discuss the end of the Personal Leave Program 2020 program AND an end to deferring scheduled pay increases
  • Includes a $1.5 billion additional one-time supplemental payment to CalPERS for state plans (to pay down liabilities and save state employer pension costs)
  • Includes a one-time $616 million payment to keep on pace to pre-fund retiree health benefits (which makes up for the employee contribution which was suspended this fiscal year to mitigate the PLP pay reduction )

The updated budget proposal kicks off legislative deliberation over the budget plan with a June 15 deadline for the legislature to send a budget to the Governor. It also kicks off discussions and collective bargaining with CalHR over ending the PLP 2020 program and ending the deferral of salary increases which many ACSS members were slated to receive July 1, 2020 and July 1, 2021.

ACSS will continue our discussions over the next few weeks with CalHR over excluded employee pay increases and will use the opportunity created by the budget surplus to address long-standing pay and benefit issues. We will keep you apprised as the excluded pay plan for the fiscal year beginning July 1, 2021 comes into focus.

The Governor’s complete budget summary can be found here:

Budget Summary (ca.gov)


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2021-22 Proposed State Budget: Governor Suggests a Possible End to the Personal Leave Program Effective July 1, 2021

Posted: 1/8/2021 Tags: budget legislation policy politics salary Tags Views: 3762

On January 8, 2021, Governor Gavin Newsom released his proposed 2021-2022 State Budget that will fund the government for the 12-month period starting July 1, 2021. This kicks off the nearly six-month process for the Legislature and Governor to negotiate and adopt a state budget.

The state spending proposal for next fiscal year would total just over $227 billion, with $164.5 billion in general fund expenditures. Regarding state employee compensation, the Governor’s budget proposal summary states:

“Although fiscal risk remains high, the revenue picture has improved. Given the updated revenue projections and the scope of the Budget, employee compensation reductions may not be necessary during the 2021-22 fiscal year.”

Director of Finance Keely Bosler stated the Administration hopes to be able to restore state employee salaries and will look at the budget picture again with the May Revision to the proposed state budget and make a determination at that time. With an improved state budget outlook and the Governor’s proposal, ACSS will advocate for the end of the PLP 2020 program for excluded employees effective July 1, 2021.

If adopted in the final state budget and implemented by CalHR, the end of the PLP 2020 program would mean that beginning July 1, 2021, excluded employees would no longer have a salary reduction of 9.23% and would no longer receive the 16 hours of “PLP 2020” leave credits. The Governor’s budget summary states that CalHR anticipates collective bargaining with rank-and-file organizations to modify the PLP 2020 program for rank-and-file employees.

In addition to the possible end of the PLP 2020, here is a quick rundown on a few items of interest to ACSS members:

  • $42.1 million in new funding for higher health care and dental costs for active state employees
  • An additional $616 million in one-time funding to prefund retiree healthcare (this makes up for the employee contribution being suspended for the current fiscal year and keeps the target date to eliminate retiree health care liabilities at 2046)
  • In addition to the $5.5 billion state employer contribution to CalPERS for state pension costs, an additional $1.5 billion supplemental pay down of retirement liabilities at CalPERS (with an additional $4.1 billion of supplemental payments proposed over the next three years to total an additional $5.6 billion)
  • $15.6 billion in the Rainy Day Fund and $2.9 billion in operating reserves
  • A permanent 5% reduction in state operating efficiencies (including reduced office and lease space)

As the proposed state budget progresses, ACSS will continue to meet with CalHR to advocate for supervisory and managerial employees. As we delve into more of the proposed budget details, we will report on any new positions and increased funding proposals for departments outlined in the full budget or if there are other proposals that impact ACSS and its members.

Read the complete ACSS State Budget Report from Legislative Advocate Ted Toppin at Blanning and Baker, Updated 1/15/2021

The Governor’s complete budget summary can be found here: Budget Summary (CA.gov)
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ACSS Call with CalHR and Finance - No Federal Funds to Reverse Employee Compensation Cuts

Posted: 10/15/2020 Tags: budget COVID-19 policy representation salary Tags Views: 2103

On October 14, ACSS joined CalHR Director Eraina Ortega and Chief Deputy Paul Starkey on a call with labor unions and employee organizations providing an update from Director of Finance Keely Bosler on the efforts to secure additional federal funding.

Triggers to Restore Employee Compensation Not Met

The 2020-2021 State Budget Act (AB 89) includes trigger language that would restore 18 categories of budget cuts if additional federal funds are available by October 15, 2020.

In a surprise to no one, Finance Director Bosler reported that no additional federal money was received by the deadline and therefore none of the Budget Act cuts will be restored.

Under Section 8.28 of the Budget Act, if $14 billion were received, the restored funding for employee compensation would add up to $1.89 billion which would end the PLP 2020 program (Section 3.90) and potentially restore the suspended general salary increases for state employees (Section 3.91). With receipt of federal funds by October 15 of more than $2 billion, but less than $14 billion, the restoration among the 18 budget categories would be proportional.

Although this means the PLP 2020 program will likely remain in place at least through the end of the budget year in June 2021, no additional state employee compensation cuts have been authorized by the Legislature.

Deficits Remain and Expenditures Up, but Budget Outlook Not as Dire as Projected in April 2020

Finance Director Bosler noted the Administration is continuing the effort to obtain needed federal funds as deficits are projected for the next few years. With any funds received after the October 15 Budget Act deadline, it is likely the Administration would work with the Legislature again to allocate those funds.

The Finance April 2020 economic forecast was bad, but thankfully was wrong with several months of revenue coming in higher than anticipated. At the same time expenditures related to wildfires have been higher than expected. While deficits will continue to be projected as the Governor’s 2021-2022 proposed budget is put together, they will be smaller deficits than originally projected.

There is no hard state hiring freeze as they want to continue to have flexibility to hire where needed. State departments will be getting instructions through a Finance budget letter to plan to reduce operating expenses by 5 percent for FY 21-22.


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CalHR Issues Pay Letters and Pay Differentials Adjusting Pay

Posted: 7/17/2020 Tags: benefits budget COVID-19 legislation policy representation salary Tags Views: 5566

This week CalHR issued a series of Pay Letters and Pay Differentials adjusting pay for excluded employees. CalHR confirmed to ACSS that the expectation remains that the State Controller’s Office will implement the major changes with the July pay period. This means the next paychecks are expected to include the following:

Personal Leave Program 2020 – a reduction in pay of 9.23% (equivalent to two days’ pay) and accrual of 16 hours of personal leave credit, to be used in the same manner as vacation/annual leave and before any other paid leave (except sick leave).

Suspension of “OPEB/CERBT” Employee Contribution – excluded employees will not pay the contribution to prefund retiree healthcare. The contributions range generally from 2 percent to 4.6 percent of salary. Excluded employees related to bargaining units 12 and 13 will continue to see the deduction, but will receive a pay differential in an equivalent amount. (This pay differential has not yet issued, but is expected to be retroactive to July 1, 2020 if not implemented with the July pay warrant.)

Although General Salary Increases effective July 1, 2020 were suspended or deferred, Merit Salary Adjustments for employees not at the top step of their classifications are unaffected and will continue.

Exempt and Excluded Employees Associated with SEIU Bargaining Units (1, 3, 4, 11, 14, 15, 17, 20, and 21)

  • $260 per month taxable cash benefit to improve access and affordability of healthcare
  • Geographic Pay of $250 per month for employees working in Orange, Santa Cruz, Santa Barbara and San Luis Obispo Counties
  • Special Salary Adjustments (generally 5%) for employees in nearly 100 classifications

>>Click here to review the Pay Letter listing the excluded employee classifications receiving the SSA increases.

Exempt and Excluded Employees Associated with Unit 18

  • A General Salary Increase of 2.75% retroactive to January 1, 2020
  • A Special Salary Adjustment at the top step of 2.5%, effective July 1, 2020 (S18 and M18 employees at the top step of the class for 12 months or more will receive the increase immediately; others will receive the increase through Merit Salary Adjustments when eligible)

As of today, ACSS awaits a Pay Letter implementing expected salary adjustments for S07 and M07 excluded employees related to the Criminalist series and changes to longevity pay, and a change to a pay differentials for DSH Police Officers and S16 and M16 employees for Continuing Medical Education expenses.

ACSS’ initial review has identified a few anomalies in the Special Salary Adjustments. We will pursue clarification and possible corrections or potential amendments to the Pay Letters with CalHR.


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Excluded Employee Compensation Plan for 2020-2021


The Department of Human Resources (CalHR) has released the outline of the excluded employee pay plan for the 2020-2021 fiscal year. We are pleased that the outline contains most of the items ACSS has advocated for in light of the Administration’s mandated state employee compensation decreases due to the large state budget deficits related to the ongoing pandemic.

The exempt and excluded pay plan effective July 1, 2020 includes:

  • Two day-per month Personal Leave Program (PLP) reducing compensation by 9.23% and providing 16 hours of leave credit per month. The PLP credit will not need to be used in the month it is accrued, but taken before other paid leave (except sick leave).
  • Suspending employee payments to pre-fund retiree health care. The deduction is shown on your pay warrant as “OPEB/CERBT”. The deductions for employees related to units 12 and 13 will continue, but be offset by a pay differential.
  • General Salary Increases are suspended.
  • Special Salary Adjustments and Pay Differentials will be extended to exempt and excluded employees where appropriate.
  • All employees related to the nine SEIU Local 1000 bargaining units (1, 3, 4, 11, 14, 15, 17, 20, and 21) will receive a $260 per month taxable cash benefit to offset health care costs.
  • The Vacation/Annual Leave Cap is increased by the amount of the PLP accrued for excluded employees related to bargaining units 2, 9, 10 and 19.

CalHR is working on pay letters to implement the details of the leave program and special salary and pay differential adjustments. CalHR expects to issue a series of pay letters “in the coming weeks” and has informed ACSS they are working with the State Controller’s Office to try to implement the majority of the salary adjustments in the July pay period.

As the pay letters are developed, ACSS will continue advocacy with CalHR to ensure excluded employees receive all appropriate special salary adjustments and pay differentials and will keep you informed regarding the expected timing of the pay adjustments.


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Excluded Employee Compensation Update – Personal Leave Program


The employee compensation reductions called for by the Governor and reflected in the state budget are coming into focus. The Legislature encouraged rank-and-file groups to agree to reductions through collective bargaining. Without those agreements, the Legislature would authorize employee compensation reductions. Two groups have reached agreement, including SEIU Local 1000 representing nine of the State’s 21 bargaining units and the California Correctional Peace Officers Association (CCPOA), representing Bargaining Unit 6.

The Local 1000 agreement gives a road map to other bargaining units and sets the expectations for likely excluded employee compensation adjustments – a two-day per month “Personal Leave Program” offset in part by suspending the employee contribution to pre-fund retiree health care. This framework is consistent with the approach ACSS has advocated for in light of the excluded employee compensation reductions required by the recent COVID-19 related budget deficits being addressed by the revised state budget.

SEIU Local 1000 Agreement

The tentative agreement or “Side Letter” to modify the Local 1000 labor contract includes the following for rank-and-file employees:

  • Two day-per month Personal Leave Program (PLP) reducing compensation by 9.23% and providing 16 hours of leave credit per month for two years
  • Suspending employee payments to pre-fund retiree health care for two years; employees will not pay this contribution which would otherwise increase to 3.5% effective July 1, 2020
  • All employees will receive $260 per month to offset health care costs
  • Defers the 2.5% July 1, 2020 general salary increase for two years (the 2% increase scheduled for July 1, 2021 is not impacted)
  • Special Salary Adjustments (generally 5%) for 176 classifications of employees will still be paid effective July 1, 2020
  • If federal money is received and/or state budget revenue allows, the cuts and deferrals could end early

Under the PLP, employees work their full schedules. The reductions do not change salary ranges and do not impact benefits or retirement calculations. PLP credits do not count toward the vacation/annual leave cap and need to be used before other paid leave, except sick leave.

With the $260 per month and suspension of the retiree health contribution, the PLP reductions of 9.23% will be significantly mitigated for most employees. Some employees receiving special salary adjustments will still see small increases in their paychecks despite the PLP reductions.

What This Means for Excluded Employees

The Administration has made clear it intends to tie excluded employees to their related bargaining units in achieving salary savings. It is expected that other bargaining units will reach agreements for two-days of PLP, offset in part by suspending the employee contribution to pre-fund retiree health care.

CCPOA representing Bargaining Unit 6 (correctional officers) agreed to a one-day PLP and to different compensation reductions including holiday pay reductions and suspension of night and weekend shift differentials. It is not likely that other units will be able to find enough cost savings to meet the required reductions to avoid a second day of PLP.

ACSS has pushed for any compensation cuts for excluded employees to be offset in part by suspending the pre-funding of retiree health care. ACSS has also made clear to CalHR that the $260 per month health care affordability payment and the special salary adjustments must also be provided to all related excluded employees to avoid salary compaction issues.

With the SEIU Local 1000 Side Letter tentative agreement, we have reached out to CalHR to reiterate these requests and to also ensure that a fair package is in place for excluded employees not directly related to a bargaining unit. Should any rank-and-file unit not reach agreement and instead allow salary reductions to be imposed, ACSS will work to ensure that the reductions for related excluded employees are equitable.

As bills approving agreements reached by rank-and-file organizations are presented to the Legislature for approval, ACSS will continue its aggressive advocacy in protecting the employment interests of excluded employees. ACSS will also keep you informed with the latest information regarding your salaries and benefits.


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Legislature’s Version of the State Budget Avoids Suspending Salary Increases and Delays Possible Salary Reductions

Posted: 6/5/2020 Tags: budget legislation legislature representation salary Tags Views: 4408

Legislative leadership has announced agreement between the Senate and Assembly on a legislative version of the 2020-2021 State Budget. The Legislature has proposed its own version of the budget modifying the Governor’s proposed May Revision budget. While there is still a long way to go before a final state budget agreement is reached, the “Legislature’s Version” of the budget differs from the Governor’s May Revision in significant ways concerning state employee compensation.

The Governor’s May Revision budget proposal would suspend all planned pay raises for July 1, 2020 and would also temporarily reduce employee compensation by 10 percent. The temporary cuts would be “triggered off” if federal money is received by the state.

The Legislature’s Version instead assumes that congress will pass an economic stimulus package, noting there is “growing confidence” that federal funds will be received. If the federal funds are not received by September 1, 2020, trigger cuts for employee compensation would be authorized effective October 1, 2020. The details of the proposed employee compensation reduction authority are not yet published in bill form.

The Legislature’s Version notes that it “excludes proposed savings related to employee pay and suspending employee pay increases.” If this version of the budget were adopted, it would not authorize the Administration to furlough state employees or cut pay. It is uncertain whether the Governor could (or would) take action through the state budget process to suspend the planned July 1, 2020 salary increases. The Legislature also notes that state employee unions are being asked to agree to cost saving reductions through the collective bargaining process. The results of collective bargaining could also impact compensation for related excluded employees.

The Legislature’s Version of the state budget has not been published in bill form. The details of the employee compensation sections of the budget will matter. Negotiations between the Legislature and the Governor over the treatment of state employee compensation will continue with a budget resolution expected by the June 15 constitutional deadline. ACSS’ legislative advocates will be there to continue to protect the interests of excluded employees.


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CA Budget Deficit a Direct Result of Coronavirus Pandemic

Posted: 5/18/2020 Tags: budget COVID-19 salary Tags Views: 2234

Governor Gavin Newsom appeared on “State of the Union”, a televised CNN program, on Sunday to discuss the COVID-19 Pandemic and the effect on the California economy. During the interview, Governor Newsom said that “the nearly $54 billion budget deficit the state is facing is a direct result of the impact from the coronavirus pandemic and not because of existing financial troubles.”

In January, Newsom projected a surplus after paying off 100% of inherited debts and pay down long-term financial obligations. However, last week Newsom revealed a revised budget deficit of $54 billion, affecting state worker’s salaries and many other state-funded programs.

Newsom, along with other western states, has asked Congress to send more financial aid to state governments. “We are not looking for charity. … It is incumbent upon the federal government to help support these states through difficult times.

Click here to read the full CNN article.


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